U.S. equities reversed into the red U.S. equities reversed into the red in the wake of the trifecta of data that included an uptick in core CPI, headline bounce in durables (weak ex-transport) and rebound in jobless claims; beneath the surface not that strong. The Dow is 12-points in the red, S&P sank 1-point and NASDAQ is up 5-points, below previous shallow gains. Europe is still slightly firmer, with the Euro Stoxx 50 up 0.3% after gains of 1.08% on Japan's Nikkei and a 2.1% rise on the Shanghai Comp amid stimulus hopes. Aside from the mixed data, Salesforce.com jumped nearly 11% after a 26% gain in revenues, along with raised earnings and guidance, while Transocean rose 4.4% after firm results. Morgan Stanley sank 0.5% after a $2.6 B settlement for claims on mortgage bond sales.

Treasury Action: yields popped up from lows Treasury Action: yields popped up from lows on the headline data, though the big durables gain was mostly Boeing, the 0.2% rise in core CPI was hardly inflamatory and jobless claims rebounded. That should cap the knee-jerk yield rise to 1.96% on the T-note, which has already pulled back to 1.94% compared to lows near 1.93% earlier. The 2s-10s spread has tightened to +133 bp overnight, but slightly outside earlier narrows.

Fedspeak from moderate Lockhart of the Atlanta Fed Fedspeak from moderate Lockhart of the Atlanta Fed on monetary policy and the economic outlook has been cancelled before the 2015 Banking Outlook Conference there. But Dallas Fed hawk Fisher will be again tapping his recent "Reflections on 10-years at the Fed: Through the Financial Crisis" speech in London at Imperial College of London from 13:15 ET.

08:15 EDT

Canada CPI Preview Canada CPI Preview: Analysts expect CPI to slow to a 0.8% y/y pace in January from the 1.5% pace in December. CPI is seen falling 0.3% m/m in January after the 0.7% plunge in December. Another hefty drop in gasoline prices should drive month comparable CPI lower. But the impact of gasoline prices on total CPI should be reduced due to changes made in the CPI weights. The BoC's core CPI index is seen rising 0.1% in January, similar to the action seen in past months of January. Annual core CPI growth is expected to expand at a 2.1% y/y rate, down from the 2.2% clip in December and in-line with the 2.1% pace in November.

U.S. durable goods orders preview: U.S. durable goods orders preview: durable goods orders are expected to grow 2.5% in January (median 1.6%), or 0.1% ex-transportation, with shipments up 0.5%. Inventories are expected to grow by 0.3% in January, which would leave the I/S ratio steady from 1.66 last month. Forecast risk is downward, as there was a huge drop in Boeing orders in January. preview for more.

Energy Action: NYMEX crude is trading under $50.40 Energy Action: NYMEX crude is trading under $50.40 into the N.Y. open, after touching $51.24 highs after the close on Wednesday. Comments from Saudi Arabia's oil minister, who said the demand picture appears to be firming up, was behind the rally. On the other side of the coin, U.S. inventories remain at record highs, and estimates of excess supply of as much as 1.5 M bpd will likely prevent crude prices from moving much higher for now. April RBOB gasoline futures remain firm over $1.92/gallon, after surging more than 9 cents on Wednesday. A larger than expected EIA inventory draw, along with ongoing refinery labor and outage issues have supported this week. Average U.S. retail gasoline prices are up another 2 cents/gallon to $2.34, and up 7 cents over the past week, according to AAA. Natural gas prices have eased back into the $2.81 level, as moderating U.S. temperatures reduce demand.